Construction Industry Value Chain

PROJECT MANAGEMENT IN MALAYSIACHAPTER 3

©Sheila Belayutham

DEFINITION OF THE CONSTRUCTION INDUSTRY

• Customer – Government Departments, State Governments, major public companies, property developers, individual members of the public or others

• Parties involved – Main contractors, client, consultant.• The finished products – Within time, cost and quality

required. Residential, commercial building.

©Sheila Belayutham

INTRODUCTION TO THE MALAYSIAN CONSTRUCTION INDUSTRY• The construction industry constitutes an important

element of the Malaysian economy.• Currently accounts for only 2.7% of the gross

domestic product (GDP) in 2006.• The industry is critical to national wealth creation as it

acts as a catalyst for, and has multiplier effects to the economy and also enables other industries namely manufacturing, professional services, financial services, education and others.

• Recent years’ decline in the performance of the Malaysian construction industry has resulted in the urgent need for the Malaysian construction industry to chart its direction towards strengthening its foundations to face current and future challenges.

©Sheila Belayutham

Construction Industry Value Chain

©Sheila Belayutham

Malaysian Construction Industry and the Economy

©Sheila Belayutham

Construction Contribution to GDP (By Country)

©Sheila Belayutham

GDP Growth of the Malaysian Economy vs. Construction Industry: 1974 - 2004

©Sheila Belayutham

Construction Industry as an Enabler of Government’s Socio-Economic Policies

©Sheila Belayutham

Projects Undertaken by Malaysian Contractors (By Country)

©Sheila Belayutham

Current Foreign Projects Undertaken by Malaysian Contractors (By Type)

©Sheila Belayutham

Malaysian construction industry strategic and operational challenges.• Inefficient and ineffective methods and practices in contractor’s

registration and administration procedures, procurement methods and practices, contracting approaches, construction methods, planning submission and building plan approval procedures.

• Inability to attract and develop local workforce for the industry mainly due to the “Dirty, Dangerous, Difficult” image of the industry.

• Difficulty in securing timely and adequate financing at the various stages of construction, and difficulty in repatriating profits/dividends.

• Inability to provide total integrated solutions in foreign projects, unlike Japanese, Korean and German construction companies which could provide total solutions that include financing package and equipment.

©Sheila Belayutham

PMI MALAYSIAN CHAPTER

• Global Not-for-profit professional organization for project management comprised of Project Managers or those involved in Management of Projects. Headquartered in Newtown Square, Philadelphia USA.

• In Malaysia, it is located at Project Management Instititute Malaysia Chapter Business Advanced Technology Center BATC, Universiti Teknologi Malaysia City Campus, Jalan Semarak, 54100 Kuala Lumpur, Malaysia.

• PMI sets industry standards, conducts research, and provides education, certification, and professional exchange opportunities, designed to strengthen and further establish the profession. PMI advances the careers of practitioners, while enhancing overall business and government performance.

©Sheila Belayutham

What PMIMY and PMI provides• Professional Standards

▫ A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - 2000 edition

• Certification

• Research & Wisdom Center

• Publications

• Professional Development

• Education & Training

• Corporate Relationships

• Networking and fellowships

©Sheila Belayutham

OBJECTIVES OF CERTIFICATION

• Provides professional/personal recognition• Expedites professional advancement• Creates job growth/opportunities within an

organization• Provides framework for standardized project

management requirements• Increases employee’s value to the organization• To be a truly global certification

©Sheila Belayutham

Construction Industry Value Chain

Documents

Transcript of Construction Industry Value Chain